What just happened? Why did crypto crash today?
The crypto market took a sharp dive across the board — Bitcoin, Ethereum, and nearly every major altcoin dropped between 2–5%. Here's what drove the sell-off:
Macro & Geopolitical Triggers
U.S. Federal Reserve kept interest rates steady**, sending a hawkish signal that rate cuts aren’t imminent — this pushed investors out of risk assets like crypto
New U.S. tariffs and trade tensions** are spooking markets. Tariff announcements from the Trump administration rattled equities and spilled over into crypto
Rising Treasury yields (10-year yields up to \~4.7%) made bonds more attractive, prompting a shift away from risk-on assets
Liquidations & Technical Sell-Off
* As prices dropped, **leverage unwind triggered massive liquidations** — hundreds of millions of dollars worth of longs were automatically closed
* On-chain metrics show **crypto ETFs and whale investors pulling back**, while traders lock in profits after recent price rallies
Market Sentiment Shift
* Liquidations are driving a **fresh round of profit-taking**, especially following Bitcoin’s multi-week rally above \$115K
* Overall market mood has turned risk-off, exacerbating the decline
What To Watch Next
1. **Fed tone** — Will they hint at future rate cuts? If yes, markets may bounce back.
2. **Trade/trade headlines** — Any de-escalation in tariffs or global trade friction could stabilize sentiment.
3. **Technical support** — Watch BTC support zones (~~\$115K–\$113K) and ETH (~~\$3.6K–\$3.5K) — a break could trigger deeper correction.
Final Takeaway
Today’s crash wasn’t caused by a single event—it’s a perfect storm of tightening macroeconomic conditions, global trade anxiety, leveraged sell-offs, and shifting sentiment. But don’t forget: such pullbacks often create attractive entry points once the market digests the news.